Artificial Intelligence has recently attracted attention due to its rapid advancement in various industries such as the healthcare and finance industry. The intersection between AI and entrepreneurship is still being studied, and this study explores the impact of AI-tools on startups, with a focus on Swedish startups. The study explores the utilization of AI- tools to optimize their operations or capture new opportunities. It also examines their alignment to The Lean Startup Development, designed to help entrepreneurs to navigate through challenges they face when launching a product or a service. The primary contribution is of qualitative nature, using semi-structured interviews with individuals from startups implementing AI-technologies. Interpretation of the data is done through thematic analysis, which involves identifying themes and core categories.  The startups use the AI-tools for strategic internal planning and operations. The findings suggest that the AI- tools are commonly used to minimize costs, automate certain tasks, saving time to focus more on complex tasks and thereby enhancing efficiency which gradually leads to strengthened competitiveness. Interestingly, the participating startups show a consideration for ethical risks making more careful decisions on the information provided by the AI-tools.